Zonal Hr, New Delhi
Manager- Human Resources
B K BHATIA
Director Of Company
1. KRI,KPI, KRA is a tool for PA
2. Balance Score Card is another tool to measure PA
3. Management by Objectives (MBO) is another one
The softwares available in the Market are
1. Adrenalin from Polaris available
2. RAMCO's HCM suite
3. TCS iON
4.SAP for small and medium enterprise
They are come in perpetual licence /cloud based. In most cases Performance management does not come as a separate software, it comes under HCM (Human capital management) or HRM module.
Hope, I have answered your question.
27th August 2013 From India, Salai
27th August 2013 From India, Indore
27th August 2013 From India, Delhi
Every organization has a vision, mission and strategy. They have 2 goals. Long term goals may be 5yrs to 10 yrs and the other is short term goals. These goals align with the vision, mission and strategy of a company. These goals are segregated across various departments. Therefore the companies goals are divided into department specific goals and from department to individual goals. This is how if your back trace, each individual works towards the dept goal which intern help the organization to achieve its overall vision, mission, strategy.
Let's say, The companies vision is to 1. Become Global leaders in a specific area, 2.Innovation, 3.Stake Holder Value 4.Customer Satisfaction.
Then the Mission her would be 1. Bring Innovation by new product technology 2. Cost Minimization to increase customer satisfaction. 3. Minimize the defect. 4 . On time delivery 5. Expanding with new business units and increase operations etc.
The Strategy would be
1. a. HR- Recruitment - To bring in knowledge workers, To minimize attrition,
b. HR - Training - To enhance knowledge of employees by understanding individual/organization training needs
c. HR - Performance Appraisal - Better performance by finding ways for individual improvements
2. Operations :
a. Increase production b. reduce defects c. On time delivery d.Supply Chain Management
a. Increase labour production, b. Quality Control , c. Work force Management etc
4. Finance :
a. Financial Budgeting , b. Increase Stake Holder value c.Cost control etc
These strategic goals are brought into picture using KRA, KPA and KPI
KRA - Key Result Areas, KPA - Key Performance Area and KPI -Key Performance Indicators.
These KRA,KPA and KPI will hold good to the organization. And from there we bring it to the department level and then to the individual level. There can be 3-5 KRA and for each KRA there can be 2-3 KPA. KPI are a measure/indicators for the KPA.
Lets take for a HR dept the KRA can be 1.Recruitment/ Selection 2.Workforce Planning/ 3.Diversity Management 4.Performance Management 5.Reward Management 6.Workplace Management 7.Industrial Relations 8.Safety And Health Workplace 9.Building Capabilities And Organization Learning 10.Effective Hr Management Systems etc
KRA 1 -Recruitment/ Selection
KPA 1- Recruitment KPI= average time taken for recruitment per employee = 2 months
KPA 2 -Selection KPI = average cost per new employee
KRA 2- Performance Management
KPA 1 - Performance Appraisals KPI = all staff to be appraised at least once annually
KPA 2 - Succession Planning KPI = 8 Potential staff to be identified and talent managed
KRA 7 - SAFETY AND HEALTH WORKPLACE
KPA 1 - SAFETY [ KPI = accident safety ratings, benchmark with industry]
KPA 2 - HEALTH [ KPI = actual health expenditure vs budget ]
THIS IS HOW WE DO FOR EACH DEPARTMENT.
BALANCE SCORE CARD : The Balanced Scorecard provides organizations with the ability to clarify vision and strategy and translate them into action. By focusing on future potential success it becomes a dynamic management system that is able to reinforce, implement and drive corporate strategy forward.It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results.
Balance score card looks at an organization in 4 different perspectives.
1. Financial perspective -- return on investment, shareholder value
2. Customer perspective --- customer satisfaction, our corporate image?
3. Process perspective --- in what processes should we excel to succeed?
4. Innovation perspective --- how will we go on from lessons learned and sustain our ability to change and improve?
The bottom level being the financial perspective and the top most would be the learning and growth (Innovation). Each perspective is given a measure . Not more than 22% of your measures should be financial, about 23-25% should be customer oriented, approx. 28-30% should be covering the processes perspective and 23-25% should cover innovation. We also mention our objectives, Measures, Targets and Initiatives.
As Sai Mention, 360 degree feedback is also another tool for performance appraisal.A 360 evaluation focuses on subjective areas such as teamwork, character, and leadership effectiveness and does not focus much on job requirement. Since it is more behavioral oriented we don't 100% rely only on 360 degree feedback.
I hope I have answered your question, to the best of my knowledge.
30th August 2013 From India, Salai
Its really awesome information shared by Kirthika, & I would like to add few more points in previous mentioned PMS.
Nowadays KPI is accompanied with "Competencies" to save our time & cost (to be consumed during Training need Identifications, Succession planning & development of individual) as well as measurement of our goals accessibility.
Even modern HR practices focus on Competency based recruitments so that every sorts of HR activity is inter-linked altogether.
Let me explain :
Every job is required a set of competencies to achieve our goal & hence mission & vision of organizations, so during a job analysis a position has been assigned certain
competencies. these competencies would be rated with KPI during performance appraisal so as to find out the task accomplishment along -with personal development.
The objective of Competency based Performance appraisal is " Mutual benefits & growth of an individual as well as an organization" \
31st August 2013 From India, Ghaziabad
the list of performance management tools are below , while there are new tools in the market as well.
7.Graphic Rating Scale
9.Forced Choice Method
11.Field Review Technique
4th September 2013 From India, Delhi